How does it affect the borrowing real interest rate rb, Microeconomics

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How does it affect the borrowing real interest rate rb

Problem

Suppose financial innovations reduce the interest rate differential at a given level of output.

How, if at all, does this development affect output, Y, and the saving real interest rate rs ? How does it affect the borrowing real interest rate rb? Draw a diagram to help illustrate your answer.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: How does it affect the borrowing real interest rate rb

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Microeconomics: How does it affect the borrowing real interest rate rb

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